Trade Regulation Rule Concerning Deceptive Advertising and Labeling as to Size of Tablecloths and Related Products

FEDERAL TRADE COMMISSION

16 CFR Part 404

Trade Regulation Rule Concerning Deceptive Advertising and

Labeling as to Size of Tablecloths and Related Products

AGENCY: Federal Trade Commission.

ACTION: Repeal of rule.

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SUMMARY: The Federal Trade Commission announces the repeal of the Trade

Regulation Rule concerning Deceptive Advertising and Labeling as to

Size of Tablecloths and Related

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Products. The Commission has reviewed the rulemaking record and

determined that due to changes in industry practices and state laws,

the Rule no longer serves the public interest and should be repealed.

This notice contains a Statement of Basis and Purpose for repeal of the

Rule.

EFFECTIVE DATE: December 20, 1995.

ADDRESSES: Requests for copies of the Statement of Basis and Purpose

should be sent to Public Reference Branch, Room 130, Federal Trade

Commission, 6th Street & Pennsylvania Avenue N.W., Washington, DC

20580.

FOR FURTHER INFORMATION CONTACT:

Janice Podoll Frankle, Esq., (202) 326-3022, Division of Enforcement,

Bureau of Consumer Protection, Federal Trade Commission, Washington, DC

20580.

SUPPLEMENTARY INFORMATION:

Statement of Basis and Purpose

I. Background

The Trade Regulation Rule concerning Deceptive Advertising and

Labeling as to Size of Tablecloths and Related Products (Tablecloth

Rule), 16 CFR Part 404, was promulgated in 1964 (29 FR 11261). The

Tablecloth Rule declares that in connection with the sale or offering

for sale of tablecloths and related products, such as doilies, table

mats, dresser scarves, place mats, table runners, napkins and tea sets,

any representation of the cut size (that is, the dimensions of

unfinished materials used in the construction of such products)

constitutes an unfair method of competition and an unfair and deceptive

act or practice unless.

(a) ``Such `cut size' dimensions are accompanied by the words `cut-

size' ''; and

(b) ``The `cut size' is accompanied by a clear and conspicuous

disclosure of the dimensions of the finished products and by an

explanation that such dimensions constitute the finished size.''

On May 23, 1995, the Commission published an Advance Notice of

Proposed Rulemaking (ANPR) seeking comment on proposed repeal of the

Tablecloth Rule (60 FR 27242). In accordance with section 18 of the

Federal Trade Commission (FTC) Act, 15 U.S.C. 57a, the ANPR was sent to

the Chairman of the Committee on Commerce, Science and Transportation,

United States Senate, and the Chairman of the Subcommittee on Commerce,

Trade and Hazardous Materials, United States House of Representatives.

The comment period closed on June 22, 1995. The Commission received no

comments.

On September 18, 1995, the Commission published a Notice of

Proposed Rulemaking (NPR) initiating a proceeding to consider whether

the Tablecloth Rule should be repealed or remain in effect (60 FR

48067).\1\ This rulemaking proceeding was undertaken as part of the

Commission's ongoing program of evaluating trade regulation rules and

industry guides to ascertain their effectiveness, impact, cost and

need. This proceeding also responded to President Clinton's National

Regulatory Reinvention Initiative, which, among other things, urges

agencies to eliminate obsolete or unnecessary regulations. In the NPR,

the Commission announced its determination, pursuant to 16 CFR 1.20, to

sue expedited procedures in this proceeding.\2\ The comment period

closed on October 18, 1995. The Commission received no comments and no

requests to hold an informal hearing.

\1\ In accordance with section 18 of the FTC Act, 15 U.S.C. 57a,

the Commission submitted the NPR to the Chairman of the Committee on

Commerce, Science and Transportation, United States Senate, and the

Chairman of the Subcommittee on Commerce, Trade and Hazardous

Materials, United States House of Representatives, 30 days prior to

its publication.

\2\ These procedures included; publishing a Notice of Proposed

Rulemaking; soliciting written comments on the Commission's proposal

to repeal the Rule; holding an informal hearing, if requested by

interested parties; receiving a final recommendation from Commission

staff; and announcing final Commission action in the Federal

Register.

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II. Basis for Repeal of Rule

The Commission periodically reviews its rules and guides, seeking

information about their costs and benefits and their regulatory and

economic impact. The information obtained assists the Commission in

identifying rules and guides that warrant modification or rescission.

On April 19, 1993, the Commission published in the Federal Register a

request for public comments on the Tablecloth Rule, 58 FR 21124. The

Commission asked commenters to address the costs and benefits of the

Rule, the burdens it imposes, and the basis for assessing whether it

should be retained or amended.

The Commission received only one comment specifically addressing

this Rule along with a general comment referring to several rules under

review. The comment specific to this Rule was submitted by a trade

group representing the textile rental, linen supply, uniform rental,

dust control and commercial laundry services industries. In its one-

page comment letter, the association stated there is a continuing need

for this Rule. The commenter asserted that the Rule does not impose any

additional costs or burdens on entities subject to the Rule and that

the rule raises the level of professionalism in the industry.

In addition, one general comment, applicable to several rules being

reviewed, was received from an advertising agency association. This

organization recommended rescission of the Tablecloth Rule because the

general prohibitions covering false and deceptive advertising apply to

the industry. Thus, the commenter concluded that the Rule creates

unnecessary administrative costs for the government, industry members

or consumers.

Prior to the 1993 request for comments, Commission staff conducted

an informal review of industry practices by examining the marking of

dimensions on tablecloths and other items subject to the Rule available

for retail sale at several national chain stores. This informal review

revealed no instances of Rule violations. In fact, it appeared from the

limited review that industry products were marked with only the

finished size. Additionally, the Commission has no record of receiving

any complaints regarding non-compliance with the Rule, or of initiating

any law enforcement actions alleging violations of the Rule's

requirements. Finally, the National Conference on Weight and Measures'

Uniform Packaging and Labeling Regulation, which has been adopted by 47

states, regulates the labeling of tablecloths, and provides that these

items must be labeled with their finished size.

Because the practices that brought about the Tablecloth Rule are no

longer common industry practices and are otherwise addressed by state

law, the Rule is no longer necessary and should be repealed.

III. Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-11, requires an

analysis of the anticipated impact of the repeal of the Rule on small

businesses. The reasons for repeal of the Rule have been explained in

this Notice. Repeal of the Rule would appear to have little or no

effect on small businesses. Moreover, the Commission is not aware of

any existing federal laws or regulations that would conflict with

repeal of the Rule. For these reasons, the Commission certifies,

pursuant to Section 605 of the RFA, 5 U.S.C. 605, that this action will

not have a significant economic impact on a substantial number of small

entities.

IV. Paperwork Reduction Act

The Tablecloth Rule imposes third-party disclosure requirements

that

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constitute ``information collection requirements'' under the Paperwork

Reduction Act, 44 U.S.C. 3501 et seq. Accordingly, repeal of the Rule

would eliminate any burdens on the public imposed by these disclosure

requirements.

List of Subjects in 16 CFR Part 404

Advertising, Tablecloths and related products, Trade practices.

PART 404--[REMOVED]

The Commission, under authority of Section 18 of the Federal Trade

Commission Act, 15 U.S.C. 57a, amends chapter I of title 16 of the Code

of Federal Regulations by removing Part 404.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 95-31012 Filed 12-19-95; 8:45 am]

BILLING CODE 6750-01-M